As geopolitical tensions escalate, Bitcoin’s role as a “digital gold” is under renewed scrutiny. On June 13, BTC suffered one of its worst liquidation days of the year, with over $1.16 billion in leveraged positions wiped out. Meanwhile, gold gained nearly 1%, exposing a growing divergence between the two assets as global uncertainty rises.
The incident has reignited the debate: can Bitcoin really act as a hedge like gold—or is it still seen as a high-risk asset during macro stress?
$1.16B in BTC Liquidations: What Happened?
According to Bitcoin.com, total liquidations in the crypto market reached $1.6 billion, with BTC accounting for over $1.16 billion. The trigger? A sudden wave of fear in traditional markets following news of Israel’s attack on Iran and a spike in oil prices.
Source: Tradingview
BTC dropped from $109K to below $103K in a matter of hours before recovering slightly to $105,175. The drawdown reflects a classic risk-off reaction where speculative assets like crypto are the first to be sold.
Peter Schiff Slams Bitcoin as Investors Flee to Gold
One of Bitcoin’s most vocal critics, Peter Schiff, was quick to comment on the market’s response. In a post that went viral (237K+ views).
While Schiff’s view is predictably anti-BTC, he raises a real-time observation: in moments of crisis, capital still flows to gold, not Bitcoin.
BTC vs Gold: Is Bitcoin Price Still Undervalued?
Interestingly, a report referenced by Bitcoin.com suggests that Bitcoin may still be trading 15% below its fair value compared to gold.
That gap, analysts argue, could reflect lingering institutional skepticism about BTC’s long-term hedging capabilities. However, it could also signal an opportunity—especially if Bitcoin reaffirms its macro narrative during the next economic cycle.
Final Thoughts: Can Bitcoin Price Bounce Back?
Despite the bloodbath in derivatives, Bitcoin still holds above key support levels around $102,000. If the market stabilizes and ETF inflows resume, a return to $110K is possible in the short term.However, the comparison with gold won’t go away. As long as Bitcoin fails to act as a true safe haven during global shocks, institutional capital may remain cautious. Still, long-term believers view this volatility as a feature—not a bug—of a young asset class still defining its role in the global economy.
